“Policy innovation is needed to support the national economy through an intervention in the strategic sector that has a multiplier effect on the economy. Thus, the government is issuing fiscal support for the housing sector,” said Febrio Kacaribu, the ministry's Head of the Fiscal Policy Agency.
He said that the global economy is still experiencing volatility, primarily arising from geopolitical tensions, an economic slowdown in China, and turmoil in the United States and Europe.
The economic turmoil has led to the weakening of exports and imports along with a tightening of liquidity in financial markets. It has also put pressure on interest, inflation, and currency exchange rates, and could potentially slow national economic growth.
This has prompted the government to issue the Regulation of the Minister of Finance Number 120 of 2023 on the Value Added Tax on the Delivery of Landed Houses and Flats Covered by the Government (PPN DPT) for the 2023 fiscal year.
The support is part of a fiscal policy package issued by the government in the fourth quarter of this year. The government will also continue the PPN DTP policy for the 2024 fiscal year.
For houses with a price of up to Rp5 billion (around US$323,000), the PPN DTP is given based on a maximum purchase price of Rp2 billion.
Home purchases completed between November 2023 and June 2024 will receive a 100 percent PPN DTP (a full VAT exemption), while the incentive for the July–December 2024 period will be 50 percent.
“This facility can be utilized by one person for the purchase of one landed house or one flat unit, on condition that there was no down payment or installment before September 1, 2023,” Kacaribu said.
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Translator: Imamatul, Luthfia, Azis Kurmala
Editor: Anton Santoso
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